One Year Later, JPMorgan Chase's $100 Million Commitment Helping to Accelerate Detroit's Recovery
Firm deploys over $34 million in first year and announces new efforts to support community development, neighborhood stabilization, workforce training, small business and economic growth in Detroit
JPMorgan Chase and local partners mark anniversary by celebrating ongoing redevelopment of Downtown’s Capitol Park
May 18, 2015 - Detroit – One year after making a five-year, $100 million commitment to Detroit’s economic recovery, JPMorgan Chase & Co. today highlighted how its investment is accelerating the city’s comeback. The firm marked the anniversary of its commitment with a groundbreaking to celebrate the continuing redevelopment of Capitol Park, providing an update on its multi-year investment and announcing new steps to aid the city’s recovery.
Since May 2014, JPMorgan Chase has put $34 million of its $100 million commitment to work to address some of the city’s most pressing challenges. Working with nonprofit and city leaders, JPMorgan Chase is addressing community development, neighborhood stabilization, workforce training, small business expansion and economic growth.
“One year in, our commitment is yielding positive results across Detroit,” said Jamie Dimon, Chairman and CEO, JPMorgan Chase. “We have a long history doing business in Detroit and our commitment is a sustained, strategic and comprehensive effort that supports innovative approaches to complex challenges. We are bringing to bear our financial capital and also our human capital in the form of skills and expertise of some of our most talented people.”
A Year of Progress: Notable Statements of Support
Long-term, flexible debt capital for two Community Development Financial Institutions (CDFIs) – Invest Detroit and Capital Impact Partners – account for nearly half of JPMorgan Chase’s $100 million commitment. Together, these two leading community development lenders are using the firm’s financing to inject capital into commercial and mixed-use, mixed-income real estate and small business projects – critical projects that often lack access to conventional financing – to bolster the city’s recovery. In the first year of the firm’s program, Invest Detroit and Capital Impact Partners deployed $10.6 million to six projects that are helping to transform the city’s urban core and neighborhoods.
Beyond the capital deployed by the $100 million commitment, Chase Community Development Banking has a long track record of community development lending and investing in Detroit. Since the beginning of 2014, the firm has financed $68 million for projects serving the needs of Detroit’s low-and moderate-income communities. One example is the revitalization of Capitol Park, where today, JPMorgan Chase and its partners marked the ongoing redevelopment of this historic district with a groundbreaking ceremony for the rehabilitation of Capitol Park Lofts at 1145 Griswold Street and Detroit Savings Bank at 1212 Griswold Street. The firm provided over $32 million in debt and equity financing for these projects.
Over the past fourteen months, the firm and its partners developed or preserved 350 housing units across Detroit, of which over half represent affordable housing units.
“Over the last two decades, Invest Detroit has worked successfully to develop strategies for investing in Detroit’s Greater Downtown,” said Dave Blaszkiewicz, President & CEO, Invest Detroit. “The investment fund and the support JPMorgan Chase has provided allows us to accelerate change for these areas and tailor efforts to expand our reach to assist Detroit’s neighborhoods. Our objective is to create density around housing, retail and jobs.”
Equipping job seekers with the skills they need to compete for middle-skill jobs increases economic opportunity and career mobility for Detroiters. In April 2015, JPMorgan Chase issued a sector-focused analysis of the mismatch between the needs of employers and the skills of current job seekers in the city. This report evaluates the opportunities available for jobseekers and provides a roadmap for city officials, education providers and employers to align training with the nearly 6,000 projected middle-skill job openings expected each year through 2018 in Detroit’s healthcare and manufacturing industries.
To provide Detroiters with the skills they need to succeed, in the first year of the firm’s commitment JPMorgan Chase invested in proven training providers, such as Focus: HOPE, to expand training programs to reach more than 400 more job seekers. In 2014, 300 more young people received summer jobs through Grow Detroit Young Talent, a program administered by the nonprofit City Connect Detroit, on behalf of the Mayor’s office. Using a $500,000 grant from JPMorgan Chase, young people developed skills and experiences necessary for lasting careers.
In 2015, JPMorgan Chase is developing a map of the city’s workforce resources that will inform Detroit’s workforce strategy and help to identify necessary steps to building pathways for job seekers to better paying, more advanced career opportunities within key sectors. Working with the Detroit Employment Solutions Corporation, this research will highlight where jobs are available, the skills and education levels residents need to fill these jobs and where they can go to secure these skills.
JPMorgan Chase is also supporting the expansion of the Mayor’s Grow Detroit Young Talent summer youth employment program for the city’s young people, providing an additional $500,000 to help 350 more young people find summer jobs that promote skills-development.
“Focus: HOPE is committed to providing opportunity and access to high tech jobs in manufacturing and information technology through education and job training,” said William F. Jones, CEO, Focus: HOPE. “JPMorgan Chase understands just how important and how hard this work is and has provided both financial and technical support. We appreciate their investment in Focus: HOPE and applaud their investment in Detroit's future.”
Financing home rehabilitation has been a major barrier for those seeking to purchase homes in the city. To help address this need, in 2014, JPMorgan Chase provided community lender Liberty Bank, through its foundation, with a $5 million grant to create the Home Restoration Program, which extends affordable rehabilitation loans to qualified buyers. JPMorgan Chase also provided an additional $300,000 for down payment assistance for qualified low-and-moderate-income households.
Through this collaboration, Liberty Bank’s Home Restoration Program is working in the coming years to extend up to $20 million in loans. The program’s pilot phase focused on properties sold through the city’s Neighbors Wanted auction in the Boston-Edison and East English Village neighborhoods.
During the second half of 2015, the Home Restoration Program will expand into four additional neighborhoods – Grandmont Rosedale, Jefferson Chalmers, Southwest and University District/Marygrove – from the initial two and will provide financing to buyers seeking to purchase homes outside of the auction. Liberty Bank will also offer home improvement loans to existing, qualified homeowners in all of these neighborhoods. In 2014, JPMorgan Chase made $305,000 in grants to three counseling agencies – Southwest Economic Solutions, U-SNAP- BAC Community Development Corporation and Central Detroit Christian Community Development Corporation – to provide services to homebuyers interested in participating in the Home Restoration Program. In 2015, the firm will provide these agencies with an additional $385,000 to support the expansion of the Home Restoration Program.
“Liberty Bank has a history of working in urban areas to create stronger neighborhoods,” said Drextel Amy, President Michigan Region, Liberty Bank and Trust Co. “Our partnership with JPMorgan Chase has helped us be even more supportive of the renovation of single family housing in Detroit. We have been very happy to see newly renovated homes occupied with homeowners who are excited about the chance to invest in Detroit and to have access to the long term mortgage financing that had been scarce in Detroit.”
JPMorgan Chase also recognized the critical role the Detroit Land Bank Authority is playing in leading and coordinating the city’s anti-blight work. A $5 million grant from JPMorgan Chase in 2014 allowed the Land Bank to weather a short-term funding gap and is supporting longer-term capacity enhancements to scale the Land Bank to the size of the challenge and strengthen its infrastructure. JPMorgan Chase also invested $1 million to support the data integrity of Detroit’s Motor City Map – a centralized technology resource that the Land Bank and others use to manage, share and update millions of pieces of property data.
Small Business Development
JPMorgan Chase continues to support Detroit entrepreneurs as they grow and expand their businesses into new markets. In 2014, more than 100 small businesses received licensing, training and technical assistance from TechTown Detroit, Eastern Market and Bizdom, thanks to support from JPMorgan Chase. Eastern Market completed the renovation of Shed 5, using $1 million from JPMorgan Chase to create a new space the size of a football field containing a commercial-grade kitchen for food entrepreneurs to prepare, test and begin selling their products to more customers.
In 2015, JPMorgan Chase is providing a new $210,000 grant to Eastern Market to expand its Detroit Kitchen Connect program. Detroit Kitchen Connect is a regional network of shared-use kitchens that encourage neighborhood-based food entrepreneurs to turn their dreams into viable businesses by providing convenient, low-cost production space. This grant will add two more shared-use kitchens, bringing the total number in the Detroit region to five, and provide technical assistance to the food ventures using the kitchens.
“Over the past year JPMorgan Chase has provided a wide range of support to Eastern Market Corporation that enabled us to build capacity and scale up key programs,” said Dan Carmody, President, Eastern Market Corporation. “Their financial support and the support of their talented employees allowed us to complete the construction of facilities and expand support services to incubate and accelerate food businesses.”
In 2014, to provide entrepreneurs with early-stage capital, JPMorgan Chase and Macomb Community College created a $2.7 million Innovation Fund. This self-sustaining fund will make loans and grants to start-up and next-stage companies while requiring participating companies to offer learning or employment opportunities to community college students. The fund will make its first round of grants in the summer of 2015.
In 2014, JPMorgan Chase supported construction of the M-1 RAIL, a 3.3-mile light rail project to connect cultural, healthcare, sports, education and economic activity along a corridor between Midtown and Downtown, creating a vibrant and accessible urban center. The firm raised over $42 million in New Markets Tax Credit allocations, providing the anchor of the project’s financing; made a $1.5 million grant for construction to M-1 RAIL; and made a grant to Midtown Detroit, Inc. to mitigate the temporary impact of the M-1 construction on local businesses and help them remain healthy and vibrant during the construction period. Upon completion, the M-1 is expected to transport more than 1.8 million passengers each year.
“As the M-1 Rail project progresses, JPMorgan Chase’s support has allowed Midtown Detroit, Inc. to implement strategies around parking, signage, transportation, marketing and special events to offset the impact on small businesses located along the rail line,” said Sue Mosey, Executive Director, Midtown Detroit Inc. “These programs have mitigated the impact of reduced revenues, allowing these businesses to retain an active customer base and build a stronger tool kit for future growth.”
Global Cities Initiative
JPMorgan Chase is also helping Detroit develop economic strategies to increase its exporting and foreign direct investment. The Global Cities Initiative, a joint project of Brookings and JPMorgan Chase, released research last month that highlights businesses investing in the city and laid out ways to enhance foreign direct investment, which will create new and better jobs for residents.
Detroit Service Corps
The firm is putting the expertise and skills of its employees to work in Detroit. In 2014, the Detroit Service Corps deployed a dozen top-performing managers from around the globe to Detroit to help nonprofit organizations better serve the city. Launched in November of 2014, the Detroit Service Corps connects high-performing JPMorgan Chase managers to short-term, full-time volunteer work experiences with Detroit nonprofits. The members of the Service Corps work on projects that the nonprofit organizations have identified as critical to expanding their ability to serve the city. The inaugural group of 12 employees came from all lines of business and from around the world – Australia, Brazil, Chile, Hong Kong, Mumbai, the Philippines and the United States – to work with Focus: HOPE, Eastern Market, Michigan Community Resources and Vanguard Community Development Corporation.
The second group of volunteers arrived in Detroit in May 2015 to work with the Detroit Land Bank Authority, Accounting Aid Society of Detroit, Eastside Community Network and the Youth Development Commission.
In 2015, JPMorgan Chase will support two nonprofits to provide income tax assistance and financial coaching for Detroit residents and small businesses. JPMorgan Chase will make a grant of $125,000 to the Accounting Aid Society to provide free tax preparation to 2,300 North End residents and 1,200 small businesses. Accounting Aid will also offer services such as record keeping, financial statement preparation and payroll assistance to businesses. JPMorgan Chase will also provide $100,000 to support the work of the Wayne Metropolitan Community Action Agency to provide financial coaching programs and other services to help individuals’ build their savings and make more prudent financial decisions.
For more information visit: www.jpmorganchase.com/detroit.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.